Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) are responsible for a large share of the S&P 500’s second-quarter earnings growth, a concentration highlighted by investor Ross Gerber using FactSet (NYSE:FDS) data.
Alphabet, Amazon Drive 71% of Earnings Increase
Gerber highlighted FactSet data cited by the Wall Street Journal showing that Alphabet and Amazon account for about 71% of the dollar increase in S&P 500 blended earnings since July.
‘Alphabet and Amazon alone account for about 71% of the increase in S&P 500 blended earnings since July. If excluded, the growth rate would fall from around 50% to 32%, according to FactSet analyst John Butters.’
— Ross Gerber (@GerberKawasaki) August 9, 2026
The concentration underscores how heavily the market’s overall earnings growth is being driven by a small number of mega-cap companies, particularly those benefiting from the artificial intelligence boom.
According to FactSet, S&P 500 companies have posted 50.4% blended earnings growth for the second quarter, the strongest pace since the stimulus-fueled recovery in 2021.
However, excluding Alphabet and Amazon would significantly change that picture.
“Excluding Alphabet and Amazon.com, the blended earnings growth rate for the S&P 500 for Q2 2026 would fall to 32.0% from 50.4%,” FactSet insight stated.
Amazon has benefited from accelerating demand for its cloud-computing business, particularly as companies increase spending on AI infrastructure. Alphabet has similarly gained from rising demand for cloud services and AI-related technology.
Although earnings growth remains strong, the disparity highlights the market’s vulnerability to shifts in investor sentiment around the AI trade.
A selloff in chip stocks, for instance, pressured the S&P 500 and Nasdaq Composite ahead of the latest earnings season, even as the Dow Jones Industrial Average advanced, the WSJ report noted.
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Alphabet, Amazon Q2 Revenue Surges Fueled by AI and Cloud Growth
Alphabet reported $119.80 billion in second-quarter revenue, beating estimates of $116.82 billion.
Revenue rose 24% year over year, while Google Cloud growth accelerated 82%, driven by demand for AI infrastructure and solutions, CEO Sundar Pichai said.
Alphabet Class A shares closed at $354.30, down 3.04% over the past five days, while Class C shares declined 3.16% to $353.47 over the same period, according to Benzinga Pro.
